Howard Marks On Luck and Market Efficiency

The Oaktree Capital chief argues that alpha chasers shouldn't ignore just how efficient markets have become.

The first inspiration for this memo came in early November, when I picked up a copy of the Four Seasons Magazine in my hotel room in Riyadh, Saudi Arabia. I happened to turn to an article entitled "In Defense of Luck" by Ed Smith. It's been in my Oaktree bag ever since.